When PEI’s Annual Responsible Investment Special looked to report on the influence of LP concern for ESG management capabilities among their private equity GPs, they turned to Malk Partners for perspective. “LPs are asking GPs to pay attention, to create some process, have a policy and to begin to integrate ESG considerations,” says Andrew Malk, MP’s Managing Partner.
North American LPs are following the footsteps of their European counterparts, who started integrating ESG considerations across their investments a decade ago. In its ESG in Private EquitySM – 2013 study, Malk Partners noted that 84% of GPs cited LPs’ expectations as drivers behind their adoption of ESG principles, up from 69% a year earlier.
As LPs are communicating their growing interest in their fund managers having more formalized ESG capabilities, private equity firms are responding by adopting ESG policies, resource efficiency initiatives, and ESG risk mitigation efforts.
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